Most successful entrepreneurs make it their mission to reduce their outgoings, which can, in turn, increase their profit margin. Every penny helps when running a business, especially if it has limited finances, which is why you must routinely look for ways to lower your overheads.
If you want to help your brand to grow throughout the years, make sure you read the below six strategies that can trim your company’s outgoings in 2019.
- Decrease Supply Expenses
Little savings will make a big difference to your organization’s bottom-line throughout the year. For example, you should browse the market to find more affordable vendors, who offer the same products at a better price.
You also could make great savings by opting for affordable, compatible ink cartridges over the more expensive, branded options.
- Adopt Cheaper Marketing Strategies
Every forward-thinking business must aim to master marketing to increase their brand awareness, improve customer engagement and generate sales. However, to reduce your outgoings, you should adopt the many affordable marketing techniques to help you enjoy a great return on your investment.
For example, you could:
- Run engaging, free social media posts
- Build an email newsletter list and send direct messages to subscribers genuinely interested in your brand
- Introduce a referral program to promote word of mouth
- Partner with non-competitors for cross-promotion
- Encourage Employees to Telecommute
The United States Census Bureau has reported that approximately 20 to 30 million people currently work from home a minimum of one day per week.
Telecommuting could potentially save your business a substantial amount of money, as it could:
- Help you to downsize your office (swap dedicated desks for hot desks)
- Decrease your utility costs thanks to lower water and electricity usage
- Boost employee morale, which can increase productivity and profitability
- Make Early Invoice Payments
Many vendors are happy to provide customers with a discount for making early invoice payments.
For example, many will reduce the invoice total by 2% or more when a client pays an invoice within ten days over the standard 30. The money saved can then be reinvested back into the business.
- Buy Used Equipment
While a brand-new computer, smartphone or printer might be exciting, it might not necessarily make economic sense for your business.
Buying used equipment over new could, therefore, help you to make great savings.
Depending on your industry, you could buy second-hand:
- Technology (computers, laptops, smartphones, etc.)
- Vehicles (company cars or delivery vans)
- Office furniture
- Storage equipment
Browse the market for high-quality, second-hand items that can power your company and boost your profit margin.
- Lower Your Company’s Electricity Usage
Many employees might not think twice about leaving their computer on at the end of the day, but their actions could be draining your finances throughout the course of the year.
For this reason, you should ensure every member of staff powers their computer workstations down at the end of the working day.
You should also request your staff turn off any overhead lighting when leaving the office, which could lead to great energy savings each month.
